MCX Natural Gas May as seen in the weekly chart above has opened the week at 285 levels during this period prices has made a high of 293.50 levels. During this week as expected prices could not able to sustain on the higher levels and corrected back towards the weekly low of 282.10 levels. In the week prices are able to close below the previous week’s closing of 285.10 levels and finally closed 0.98% lower on 282.30 levels and formed “Inverted Hammer candlestick” pattern which indicates the bearish trend.
For the next week we expect Natural Gas prices to find support in the range of 275 - 273 levels. Trading consistently below 273 levels would lead towards the strong support at 268 levels.
Resistance is now observed in the range of 293 - 295 levels. Trading consistently above 295 levels would lead towards the strong resistance at 300 levels, and then finally towards the major resistance at 305 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 273 / $ 4.50 R1 - 295 / $ 4.90
S2 - 268 / $ 4.30 R2 - 305 / $ 5.10
Weekly Recommendation: Sell MCX Natural Gas May between 290 - 293, SL - 300, Target – 273 / 270.